Can you just use an OR function instead?
i.e.
It's strange though as Excel 2007 should accept longer functions like this one. Is the source file saved in the latest data format or an old one like 97-2003?
[edit] Sorry, ignore me. Was reading more than one thing at a time.
It should work by writing the formula into a cell and then referring to that cell instead of typing the formula into the data validation window?
e.g. in the data validation you write =$A3 and in A3 you write your formula as above and it should work.
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